What if debt relief could also build schools, hospitals and expand access to electricity? That is the premise behind debt-for-development swaps, a financial mechanism that first emerged as a response to the Latin American debt crisis of the 1980s and has since become an increasingly important global development tool.
In his latest op-ed for El Confidencial, Prof. Dr. Rodrigo Olivares-Caminal examines how Spain has become one of the leading countries driving this mechanism alongside France, Germany and the United States. Since 1987, 235 debt-for-development swaps have been implemented across 58 countries, mobilising US$11.5 billion for healthcare, education and environmental conservation programmes.
Spain's commitment extends beyond bilateral agreements. In 2025, together with the World Bank, it launched the Global Hub for Debt Swaps for Development to simplify these transactions and improve their transparency. The initiative builds on Spain's own experience, having already cancelled €1.64 billion of debt through agreements with 28 countries.
The article also explores recent examples demonstrating the practical impact of these transactions, including Côte d'Ivoire's education programme, Zambia's investment in electricity access and Ecuador's debt-for-nature swap supporting the conservation of the Galápagos Islands.
Read the full article here.
